Kemble,
As you know, I have concentrated my portfolio in DELL for some time. However, the statement quoting Kevin Rollins is a contradiction... "Those that sell DELL will be sorry".
From the Yahoo information posted, Kevin Rollins himself has been selling DELL quite a bit. He could have JUST sold enough to pay for the exercise of the options and taxes due if he needed to cover the price/taxes. Rather, he sold the lot of options at the current price and reaped a $52 million profit. Which I doubt he re-invested in DELL stock.
It seems that Kevin is speaking one thing to investors, and doing something else. This is two faced as far as I am concerned. We should be paying attention to what the management is doing, not what they are saying. Management has been systematically diversifying their own investements away from DELL. Michael took $1 Billion out of his DELL holdings to invest elsewhere. Why? Because he wants to make an impact. Why didn't he just direct DELL as a corporation to do this so that the gains would be shared with the share holders that made the Billion possible?
The strongest statement that DELL management can make right now is to NOT sell their option shares. Claim them, but hold them.
Until then, I agree that holding a core position in DELL makes sense. I think that diversifying like some of the smart people on the thread (and in DELL mgt.) may make some sense. (MSD, KR, VENKIE, SIG, GregM., rudedog, others). The areas that make sense to me is to follow the smart guys again. Invest in the companies that DELL partners with and invests in. Use DELL smarts to decide.
AIRO for example. I took a position in AIRO when I heard that they partnered with DELL. It was a very small position. Still, it doubled in a couple months. IF I had GUTS I would sell my DELL and follow this investment strategy with the whole basket.
I still believe that DELL is a great long term buy and hold, I am just frustrated here with the length of this delayed range trading.
Your thoughts please....
Craig |
